F5, Inc. (FFIV) DCF Valuation
TGM's two-stage DCF values F5, Inc. (FFIV) between $197.58 and $328.34 depending on assumptions, with a base case of $251.05. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (9.3%) reflects its beta.
What would today's price require?
$396.16 is justified only if free cash flow grows about +20.7% a year (fading to 2.5% long-run) at a 9.3% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 5.4%/yr | 10.3% | $197.58 |
| Base case | 8.4%/yr | 9.3% | $251.05 |
| Optimistic | 11.4%/yr | 8.3% | $328.34 |
| Analyst DCF (FMP) | independent reference — different model | $400.80 | |
Current Price
$396.16
Market-Implied Growth
+20.7%/yr
vs +11.3% 5Y actual
Model Scenario Range
$197.58 – $328.34
model output — not a price target
FFIV DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for FFIV (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $680.6M · 0.06B shares · net cash $1.1B
Estimated Fair Value
$301.90
-23.8% vs $396.16
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 8.4%/yr FCF growth and 10-year horizon fixed. Green = above today's $396.16; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 7.3% | $381 | $404 | $432 | $467 | $511 |
| 8.3% | $322 | $338 | $356 | $377 | $403 |
| 9.3% | $279 | $290 | $302 | $316 | $333 |
| 10.3% | $246 | $254 | $262 | $272 | $283 |
| 11.3% | $220 | $225 | $232 | $239 | $247 |
About F5, Inc.
F5, Inc. is a technology company specializing in comprehensive solutions designed to secure and optimize the delivery of applications across various cloud environments. Their core mission is to guarantee the security, peak performance, and constant availability of critical network applications, servers, and storage systems for their clients. Through their multi-cloud offerings, F5 empowers organizations to seamlessly develop, deploy, operate, secure, and govern their applications, whether these reside in traditional on-premises infrastructures or modern public cloud platforms. The company's extensive product portfolio includes a range of application security and delivery tools: Robust hardware like BIG-IP appliances and VIPRION chassis, complemented by their software modules and virtual editions. Software-defined solutions such as Local Traffic Manager and DNS Services for efficient traffic handling. Advanced network protection with Advanced Firewall Manager and Policy Enforcement Manager. Security and access control via Application Security Manager and Access Policy Manager. The NGINX product family, including NGINX Plus and NGINX Controller, for web serving and application delivery. Sophisticated threat and fraud prevention tools like Shape Defense, Enterprise Defense, Secure Web Gateway, Silverline DDoS, and other application security services. Beyond products, F5 offers a suite of professional services, encompassing expert consulting, training, installation, maintenance, and ongoing technical support. F5 serves a diverse global clientele, including major enterprise businesses, public sector organizations, government bodies, and service providers. Their solutions are distributed through a broad network of partners, including distributors, value-added resellers, managed service providers, and systems integrators, reaching customers across the Americas, Europe, the Middle East, Africa, and the Asia Pacific region. The company also fosters strategic partnerships with leading public cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud Platform. Established in Seattle, Washington, in 1996, the company officially changed its name from F5 Networks, Inc. to F5, Inc. in November 2021.
- Sector
- Technology
- Industry
- Software - Infrastructure
- CEO
- Francois Locoh-Donou